Legislative Synopsis 2021 Indiana Department of Revenue INTRODUCTION The Legislative Synopsis contains a list of legislation passed by the 2021 Indiana General Assembly affecting the Indiana Department of Revenue (DOR). DOR’s synopsis has been divided into two parts with each presenting the same information, but organized differently. The first part is organized according to tax type and the second by bill number. For each legislative change, the synopsis includes the heading (the relevant tax type in the first part; the enrolled act number in the second part), short summary, effective date, affected Indiana Code cites and section of the bill where the language appears. FINDING INDIANA CODE AND LEGISLATION ONLINE To find laws contained in Indiana Code, get more information about all the recently passed legislation or to read the bills in their entirety, go to the Indiana General Assembly’s website at iga.in.gov. Indiana Code is arranged by Title, Article, Chapter and Section. To find information contained in Indiana Code, on the Indiana General Assembly’s website, do the following: 1. At the top of the web page, click “Laws” and then click “Indiana Code.” Every Title of the Indiana Code appears on this page. 2. Click the Title you want to review. 3. Next, choose the Article you want to review. All the Chapters in the Article are listed on the left side of the page. 4. Click the Chapter you want to review. All Sections of the Chapter will appear, including the Section of the Indiana Code you want to examine. To see the bill containing the specific language, do the following: 1. Click the “Legislation” link on the top of the Indiana General Assembly’s web page. 2. From there, click “Bills” and scroll to the bill number you want. Bills which failed to pass will be displayed in a gray font. 3. When you find the bill, click “Latest Version” to pull up the most recent version of the bill which, if passed, will be titled as an Enrolled Act. 4. Click “Download” to open a PDF of the bill to find the relevant piece of legislation by looking for its SECTION number. Disclaimer Legislative synopses are intended to provide nontechnical assistance to the general public. Every attempt is made to provide information that is consistent with the appropriate enrolled acts. Any information or guidance not consistent with the appropriate enrolled acts is not binding on the department. The information provided herein should serve only as a foundation for further investigation and study of the current law and procedures related to the subject matter covered herein. This document does not meet the definition of a “statement” required to be published in the Indiana Register under IC 4-22-2-7. 1 DOR Legislative Synopsis 2021 Table of Contents Part I: Legislation by Tax Type 3 Office of Technology 3 Tribal-State Compact w/ the Pokagon Band of Potawatomi Indians 3 Taxation and Distribution of Pari-Mutuel Revenues 3 Indiana Career Accelerator Fund 3 Utility Receipts Tax 5 State Gross Retail and Use Taxes 5 State Income Taxes 6 State Tax Liability Credits 14 Local Taxation 19 Local Income Taxes 20 Taxation of Financial Institutions 20 Motor Fuel & Vehicle Excise Taxes 22 Tobacco Taxes 22 Department of State Revenue Tax Administration 24 Innkeeper’s Taxes; Other Local Taxes 28 Alcohol & Tobacco 31 Overweight Divisible Load 31 Certificates of Title; Liens 32 Motor Vehicle Registration 32 Size and Weight Regulation 32 Criminal Statutes 34 Local Government Planning and Development 34 Local Government Public Safety 35 Part II: Legislation by Enrolled Act Number 36 SEA 164 36 SEA 188 37 SEA 234 38 SEA 381 40 SEA 383 41 SEA 384 50 SEA 385 51 SEA 400 51 HEA 1001 51 HEA 1009 62 HEA 1055 62 HEA 1084 62 HEA 1115 63 HEA 1150 63 HEA 1169 63 HEA 1190 64 HEA 1238 65 HEA 1271 65 HEA 1285 65 HEA 1356 66 HEA 1396 67 HEA 1436 68 HEA 1437 68 2 DOR Legislative Synopsis 2021 Part I: Legislation by Tax Type Office of Technology (IC 4-13.1) Summary: Requires a state agency (as defined in IC 4-1-10-2) other than state educational institutions and a political subdivision (as defined in IC 36-1-2-13) to report any cybersecurity incident using their best professional judgment to the Indiana office of technology without unreasonable delay and not later than two business days after discovery of the cybersecurity incident in a format prescribed by the chief information officer; and provide the office with the name and contact information of any individual who will act as the primary reporter of a cybersecurity incident before September 1, 2021, and before September 1 of every year thereafter. Effective Date: July 1, 2021 Code: IC 4-13.1-2-9 Enrolled Act: HEA 1169, Sec. 5 Tribal-State Compact w/ the Pokagon Band of Potawatomi Indians (IC 4-29.5) Summary: Codifies the Tribal-State Compact with the Pokagon Band of Potawatomi Indians. Asserts that nothing in the Compact authorizes the state to impose any tax, fee, charge, or assessment upon the Band or any Band gaming operation or Gaming Facility except for the reimbursement of expenses expressly authorized pursuant to the compact. Confirms that to the extent that the Band is required under federal law to withhold federal income tax from the gaming winnings of non-tribal patrons, the Band agrees to withhold State individual income tax from gaming winnings of non-tribal patrons. Requires the Band to maintain Band taxes on retail sales, food and beverage service, and hotel occupancy, which taxes shall be in an amount that is equal to or greater than any corresponding State and local taxes which would be applicable to the Band’s Class III gaming operation if it were not located on the South Bend Site. Requires the Band to remit amounts withheld for State individual income tax together with Form WH-1 to the department. Requires the Band to annually submit Form WH-3 to the department in order to reconcile the total amounts remitted and submitted on Form WH-1 and the details of the amounts withheld per individual. Effective Date: Upon passage Code: IC 4-29.5-10-1 Enrolled Act: HEA 1055 Taxation and Distribution of Pari-Mutuel Revenues (IC 4-31-9) Summary: Requires the daily pari-mutuel breakage on wagers to be paid to the department, instead of the Auditor of State, for deposit in the appropriate breed development fund. Effective Date: July 1, 2021 Code: IC 4-31-9-10 Enrolled Act: SEA 383, Sec. 1 Indiana Career Accelerator Fund (IC 5-34) Summary: Defines, for purposes of the Indiana Career Accelerator Fund, “base year state income tax liability” to mean the amount of state income tax paid by an individual who receives a financial assistance award from the fund during the taxable year immediately preceding the taxable year in which the individual enrolled in the qualified education program. Effective Date: July 1, 2021 Code: IC 5-34-1-2 Enrolled Act: HEA 1001, Sec. 65 Summary: Defines, for purposes of the Indiana Career Accelerator Fund, “INvestED Indiana” to mean the Indiana-based, nonprofit financial aid literacy and student loan organization commonly known as INvestED. Effective Date: July 1, 2021 Code: IC 5-34-1-5 Enrolled Act: HEA 1001, Sec. 65 3 DOR Legislative Synopsis 2021 Summary: Defines, for purposes of the Indiana Career Accelerator Fund, “qualified education program” to mean a program that is certified by INvestED Indiana. Effective Date: July 1, 2021 Code: IC 5-34-1-6 Enrolled Act: HEA 1001, Sec. 65 Summary: Establishes the Indiana career accelerator fund to provide financial assistance awards to assist individuals in obtaining credentials from qualified education programs. Effective Date: July 1, 2021 Code: IC 5-34-2-1 Enrolled Act: HEA 1001, Sec. 65 Summary: Establishes that the Indiana career accelerator fund consists of the following: appropriations made by the general assembly; grants and gifts intended for deposit in the fund; repayments of awards from the fund; interest that accrues from investments of money in the fund; and money received from the department under IC 5-34-3-2. Effective Date: July 1, 2021 Code: IC 5-34-2-2 Enrolled Act: HEA 1001, Sec. 65 Summary: Directs that INvestED Indiana shall administer the Indiana career accelerator fund. Effective Date: July 1, 2021 Code: IC 5-34-2-3 Enrolled Act: HEA 1001, Sec. 65 Summary: Requires that for each individual who receives a financial assistance award from the Indiana career accelerator fund, the department shall, in each of the 10 taxable years following the taxable year in which the individual graduates from the qualified education program, determine the difference between the individual’s base year state income tax liability and the amount of state income tax liability the individual paid in that particular taxable year. Effective Date: July 1, 2021 Code: IC 5-34-3-1 Enrolled Act: HEA 1001, Sec. 65 Summary: Directs that if the amount determined in IC 5-34-3-1 for a particular taxable year is greater than zero, the department shall transfer an amount equal to the amount determined in IC 5-34-3-1 to INvestED Indiana for deposit in the Indiana career accelerator fund. Effective Date: July 1, 2021 Code: IC 5-34-3-2 Enrolled Act: HEA 1001, Sec. 65 Summary: Requires a qualified education program and INvestED Indiana to provide the department any information necessary for the department to carry out IC 5-34-3. Restricts the use of the information shared under IC 5-34-3-3 to making the determinations required by IC 5-34-3.